Index Funds are a type of investment that aims to replicate the performance of a specific market index, like the S&P 500. Instead of trying to pick individual stocks, index funds invest in all the companies within that index, providing broad market exposure. This approach often leads to lower fees and less risk compared to actively managed funds. Investing in index funds is a popular choice for many because they are simple and cost-effective. They allow investors to diversify their portfolios without needing extensive knowledge of the stock market. Over time, index funds have historically provided solid returns, making them a great option for long-term investors.